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Published on March 4, 2008

The panel also met separately to discuss the removal of the 30-per-cent capital-control regulation (see 1B).

The export measures were brought together during a meeting with the Commerce Ministry's 60 trade counsellors worldwide, held in Bangkok.

The proposed measures aim to ensure meeting an export-growth target of 15 per cent amidst the skyrocketing value of the baht following Friday's decision to cancel the 30-per-cent rule.

The baht continued its appreciation immediately after opening at Bt31.60 against the greenback yesterday afternoon. The currency has continued its rise as the government has no concrete measure to prevent money flows into the Kingdom.

FTI vice chairman Payungsak Chartsutipol said it would be very hard to reach US$175.3 billion (Bt5.6 trillion) or 15-per-cent export growth this year.

To ensure that exporters, particularly small and medium-sized enterprises (SMEs), survive amid the baht's rise, the government must fully support exporters when it comes to accessing low-priced raw materials and become an efficient centre for the provision of information, Payungsak said.

FTI deputy secretary-general Thanit Sorat said the first of the six measures was to promote exports to new potential markets, particularly in the service sector as this creates higher income for firms.

Second, manufacturers, particularly SMEs, need to have cheap sources for raw materials. The government should consider deregulating import requirements.

Third, the government should support Thai enterprises wishing to invest overseas, in order to reduce the country's foreign reserves.

Fourth, trade counsellors in each country should set up an information centre for exporters. The centre should provide the demands of targeted export destinations as well as strategies to win export contracts.

Fifth, Thai Trade Centre offices overseas should provide more trade and investment information to exporters wishing to directly access targeted markets.

Lastly, the government should create links for exporters to boost border trade as well as enhance the use of tax privileges under free-trade agreements.

Department of Export Promotion director-general Rachane Potjanasuntorn said the revoking of the capital-control measure should not affect export growth this year, despite leading to an even stronger baht.

"Overseas trade office projects are ongoing. The ministry will try to facilitate exporters and encourage them to win commercial contracts overseas, particularly in new potential markets," he said.

In addition, to increase opportunities for businesses to win overseas trade and investment contracts, the Thai Chamber of Commerce urged the government to become a member of the World Trade Organisation's government procurement agreement.

Buntoon Wongseelashote, chairman of the Board of Trade of Thailand's monitoring committee on trade rules, said the Kingdom had lost many chances to win government contracts in many countries as it is not a member of the international agreement.

For instance, the United Nations has about $20 billion under its procurement contracts each year. The United States's procurement value reached $14 trillion and the European Union's $66 trillion last year. The value of Thailand's government procurement was only $200 million last year.

"It is time for Thailand to enter the international government procurement agreement in order to encourage Thai private enterprises to participate in overseas procurement bidding," Buntoon said.

As a member, Thailand would gain more chances to spend baht on overseas investment in order to weaken the currencyt's rise and ensure Thai business growth overseas, he added.

Petchanet Pratruangkrai

The Nation